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• Further margin improvement as operating profit
(EBIT) per ton increases by 2.3%; in local currencies plus 7.6%
• Operating profit (EBIT) increases by 20% to CHF 162.4 million,
in local currencies up 26%
• Net profit up 2.4% to CHF 82.4 million, in local currencies up
9.8%
• Sales volumes up 17% to 685,265 tons
• Sales revenues up 38% to CHF 2,760.9 million, in local
currencies increase of 45%
• Gross profit up 34% to CHF 864.2 million, in local currencies
growth of 39%

Zurich/Switzerland, July 1, 2003 – In the first nine
months of fiscal 2002/03 ended May 31, 2003, Barry Callebaut was
able to grow its chocolate sales volume organically by 2%. Sales of
cocoa products were intentionally reduced. This growth in chocolate
was achieved despite generally stagnating or even declining
chocolate markets and depressed consumer sentiment, and it confirms
the strong positioning of Barry Callebaut as the world’s leading
manufacturer of high-quality chocolate products. – As explained
earlier, chocolate is a seasonal business with revenue and earnings
peaks between August and the end of March and slower revenues and
earnings in spring and summer.

Sales volumes registered a growth of 17% to
685,265 tons in the first nine months of fiscal 2002/03. In keeping
with the Group’s strategy to focus sales of cocoa products on
select third-party customers, the Cocoa, Sourcing & Risk
Management business unit scaled back its sales by 12%. Sales volume
growth achieved in the Food Manufacturers business unit was 4%, in
the Gourmet & Specialties business unit it reached 5%. The 272%
sales volume increase in the Consumer Products business unit was
the result of the first-time consolidation of the German Stollwerck
Group. Overall, excluding the Cocoa, Sourcing & Risk Management
business unit, organic sales volume growth was 2%.

Sales revenues grew 38% to CHF 2,760.9 million
(in constant currency terms: plus 45%). This growth was mainly
attributable to the effect of the Stollwerck acquisition, higher
chocolate sales volumes and the higher average cocoa bean prices in
the period under review; it was partly offset by the intentional
sales volume reduction in the Cocoa, Sourcing & Risk Management
business unit and unfavorable exchange rate movements.

Gross profit, i.e. sales revenues less material
consumed, progressed by 34% to CHF 864.2 million (in constant
currency terms: plus 39%). In comparison with sales volumes, it
grew overproportionately due to the first-time consolidation of the
Stollwerck consumer business, which has higher gross margins than
the industrial business, but also higher marketing costs.

Operating profit (EBIT) increased by 20% to CHF
162.4 million; in local currencies, growth was 26%. Operating
profit (EBIT) per ton, which is a reflection of margins achieved,
was further expanded to CHF 237.0 (+2.3%). At constant exchange
rates, operating profit (EBIT) per ton increased by 7.6%.

Net profit (PAT) grew 2.4% to CHF 82.4 million.
In constant currency terms, net profit growth was 9.8%. As
discussed earlier, net profit growth was slower than EBIT growth
primarily due to the expected higher financing costs related to the
Group’s new financing structure, which has improved its debt
maturity profile and reduced interest volatility risk. A minor
effect has come from a higher tax rate as some of the earnings were
generated in other countries.

Review of regional market
developments

In Western Europe sales volumes registered an
increase of 28% to 457,135 tons (66% of the Group’s total sales).
The increase was attributable to the Stollwerck acquisition and
higher sales in the Food Manufacturers and Gourmet &
Specialties business units. Growth in Consumer Products, with the
bulk of its business being in the declining German market, was
flat. Sales volumes in the Cocoa, Sourcing & Risk Management
business unit went down subsequent to the closure of the Bussum
factory in October 2002.

With the recovery of the Russian economy and the growing number
of middle-class consumers, Eastern Europe has
become a target market for both the Food Manufacturers and the
Gourmet & Specialties business units. Increased sales efforts
led to a sales volume growth of 5% to 25,034 tons (4% of the total
sales volume).

Sales volumes in the Americas (North and Latin
America) were down by 2% to 155,270 tons (23% of total sales). This
was the result of the planned reduction of sales to third-party
customers in the Cocoa, Sourcing & Risk Management business
unit. While sales volumes in the Gourmet & Specialties business
unit increased, sales volumes were flat in the Food Manufacturers
business unit. However, there are first signs of a recovery of the
U.S. economy with an increase in volumes ordered in recent weeks in
the Food Manufacturers business unit.

The dramatic impact of SARS on the tourism industry in
Asia/Pacific was offset by higher at-home
consumption of chocolate products and therefore higher volumes sold
to industrial customers. Sales volumes overall accelerated by 12%
to 21,040 tons (3% of total sales).

Strong sales of consumer products in Africa despite Ivorian
turmoil more than balanced out the difficult economic and political
situation in several countries in the Middle East and the effects
of the Iraq war. This led to a 2% increase in overall volumes in
Africa and Middle East to 26,786 tons (4% of total
sales).

Business performance by unit

The intention to reduce exposure to the volatile cocoa markets
and to focus sales of cocoa products on select third-party
customers led to a sales volume decrease in the Cocoa,
Sourcing & Risk Management business unit of 12% to
90,687 tons. The soaring increase in cocoa bean prices observed
since November 2001 came to an end in March 2003. As a consequence,
the increase in sales revenues was less pronounced than in the
first two quarters of the current fiscal year. However, with
average cocoa bean prices still above the level of the prior-year
period, sales revenues grew by 7% to CHF 460.8 million. All
factories, including those in the Ivory Coast, are working
normally. The mid-crop in West Africa and the main-crop in
Indonesia are currently in full swing.

The Food Manufacturers business unit, which
supplies chocolate and compounds to industrial customers, expanded
its sales volumes by 4% to 386,194 tons, despite a generally flat,
in some regions even declining market. The trend towards
outsourcing was confirmed and the business unit booked several
large contracts with food manufacturers; the contract portfolio for
the next nine months looks promising. Sales revenues went up by 11%
to CHF 1,196.0 million. The increase was attributable to higher
sales prices due to higher cocoa bean prices and to the increased
share of higher-margin products sold.

The Gourmet & Specialties business unit,
which caters to the needs of professional chocolate users such as
chocolate makers, pastry chefs, hotels and restaurants, grew its
sales volumes by 5% to 80,411 tons and its sales revenues by 13% to
CHF 367.4 million. All brands and all regions with the exception of
Asia-Pacific (SARS) contributed equally to this solid growth, which
is the consequence of successfully launched new products and the
first results of the business unit’s focus on the most profitable
segments of the market, managed by a dedicated and expanded sales
team. The Dutch-Belgian chocolate company Luijckx Beheer B.V.,
acquired as of March 3, 2003, was consolidated for the first time.
It contributed 1,075 tons (1%) to sales volumes and CHF 11.3
million (3%) to sales revenues.

In the Consumer Products business unit, sales
volumes went up by 272% to 127,973 tons, mostly as a result of the
Stollwerck acquisition. Excluding the effects of the acquisition
and a shift of roughly 3,000 tons of industrial chocolate to the
Food Manufacturers business unit, growth in Consumer Products was
flat. This has to be seen in light of a rough economic climate in
Germany with a contracting chocolate market, where Consumer
Products generates approx. 80% of its sales, and unusually high
temperatures in the month of May. Sales revenues increased from CHF
162.1 million in the prior year to CHF 736.7 million (+355%), with
CHF 587.1 million attributable to Stollwerck. The integration and
restructuring of the Stollwerck Group are making progress: The
streamlining of the product portfolio has led to a considerable
reduction in the number of SKUs (Stock Keeping Units). The
relocation of the Gubor production activities to Norderstedt near
Hamburg as of September 30, 2003 with the objective of optimizing
production costs is on track both in terms of schedule and
budget.

Outlook

Patrick De Maeseneire, Chief Executive Officer of Barry
Callebaut, gave the following outlook: “Our 200 million CHF EBIT
target for full fiscal year 2002/03 – barring any major
unforeseen events – is still realistic although the general
market environment, especially the economic situation throughout
Europe, has generally worsened since our half-year report. My
confidence is bolstered by several new and promising products in
the pipeline, especially in our Gourmet & Specialties business
unit, which will allow us to respond to changing user and consumer
needs and to further differentiate ourselves from our
competitors.”

For further information see Barry Callebaut’s
“Letter to Investors” with more
detailed financial information published on the internet
(www.barry-callebaut.com, go to “Investors/Documentation”).

About Barry Callebaut:With annual sales of
CHF 2.6 billion for fiscal year 2001/02, Barry Callebaut is the
world’s leading manufacturer of high-quality cocoa and chocolate
products. Barry Callebaut operates some 34 production facilities in
16 countries and employs approximately 7,400 people. The company is
organized into four strategic business units: Cocoa, Sourcing &
Risk Management, Food Manufacturers, Gourmet & Specialties and
Consumer Products.

The company’s customers range from industrial processors, such
as the world famous branded consumer goods manufacturers who
produce chocolate, confectionery, biscuits, dairy products, ice
cream and breakfast cereals incorporating Barry Callebaut’s
products, to artisanal users, including hotels, gastronomy,
chocolate makers, pastry chefs and bakers, to partners in the food
retailing industry for whom the Barry Callebaut Group produces
branded, customer label and other consumer products. Barry
Callebaut also provides a comprehensive range of services in the
fields of product development, processing, training and
marketing.

The holding company, Barry Callebaut AG, has been listed on the
SWX Swiss Exchange since June 1998 (ticker symbol BARN). The fully
paid-up share capital amounts to CHF 517 million, divided into
registered shares with a nominal value of CHF 100 each. On May 31,
2003, the close of the third quarter of fiscal 2002/03, the market
capitalization was approx. CHF 933.2 million.

Fiscal year 2002/03 will close on August 31, 2003. Results for
the full fiscal year 2002/03 will be published on November 11,
2003.